US stock futures experienced a decline on Tuesday night as market sentiment worsened following a turbulent trading day that saw all three major indices close significantly lower. The Dow Jones Industrial Average futures fell by 0.3%, while S&P 500 futures dropped 0.7%. The tech-heavy Nasdaq 100 futures took the biggest hit, sinking around 1%. A major factor contributing to this decline was the disappointing performance of Advanced Micro Devices, Inc. (AMD), whose shares fell more than 3% despite reporting fourth-quarter guidance that exceeded analyst estimates but ultimately did not meet investor expectations.
During the regular trading session, the Nasdaq Composite led the losses, plummeting over 2%. A notable player in this downturn was Palantir Technologies (PLTR), whose shares fell nearly 8% despite surpassing third-quarter earnings predictions. Concerns about the sustainability of recent AI-driven rallies have started to surface among investors, with many questioning whether such surges have overlooked fundamental financial metrics. Notably, famed investor Michael Burry’s investment strategies have raised alarms, as he has taken positions against both Palantir and Nvidia (NVDA), suggesting fears of an impending bubble in the AI sector. AMD’s recent earnings miss adds to these growing worries.
Looking ahead, Wednesday’s earnings reports are expected to draw significant attention, with key players like McDonald’s, Qualcomm, Robinhood, and Toyota poised to reveal their performance metrics. Economic data will also be in focus as traders await the ADP private payrolls report, which will provide insights into the labor market alongside updates on mortgage applications and ISM services activity. However, the ongoing government shutdown has hampered the release of critical economic data and threatens to extend to what could become the longest shutdown in U.S. history by Wednesday.
In a related development, the Trump administration is warning of potential chaos for travelers as airport closures are being discussed amidst the shutdown. Additionally, President Trump’s tariffs are facing a crucial test as the Supreme Court prepares to hear arguments regarding the legality of his authority to enforce these tariffs. The outcome of this case could have far-reaching implications for the global economy.
Meanwhile, the price of gold continues to struggle around the $4,000 mark after a record-setting rally. The combination of a robust dollar and the Federal Reserve’s interest rate cuts has dampened the precious metal’s appeal as a safe haven investment, reflecting changing market dynamics in response to overall economic conditions.
